Norwegian energy giant Statoil has announced that a new discovery in the North Sea could contain in the range of 25 to 130 million barrels of oil which would make it potentially worth £5billion at today's prices.

The group said the find, in the Verbier sidetrack well inside the outer Moray Firth, is proof that "there could be significant remaining potential" in the basin.

Jez Averty, senior vice president exploration in Norway and the UK at Statoil, said: "This is an encouraging result for Statoil and the UK team.

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Jenny Morris, vice president for exploration in the UK, said: "Our aim this summer was to develop Statoil's UK position through testing three independent prospects ranging in geological risk and with a potential impact on our portfolio.

"Whilst the results of the other two exploration wells were disappointing, we are convinced of the remaining, high-value potential on the UK continental shelf and the Verbier result certainly gives us the confidence and determination to continue our exploration efforts."